Should the proposed definition apply to health insurance

Jul 1, 2008

  1. URDRWHO
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    URDRWHO Guru

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    I'm wading through the SEC comments on their proposed 151A - EIA's as securities. What I find is telling to your future business.

    http://sec.gov/rules/proposed/2008/33-8933.pdf
    "What contracts should be covered by the proposed definition? Should the scope of contracts covered be articulated by reference to state law? Should the proposed definition extend to all annuity contracts, or should any annuity contracts be excluded? Should variable annuity contracts be covered by the proposed definition? Should the proposed definition apply to forms of insurance other than annuities, such as life insurance or health insurance?"

    As they said in the movie Butch Cassidy and the Sun Dance Kid..."Who are those guys?" They are the guys that want to rule.

    Page 36 and my eyes are bulging. Only bureaucrats can write like this!!!

    I did warn someone that the SEC may start to consider health insurance as part of their jurisdiction? They said no that can't be but.............
     
    URDRWHO, Jul 1, 2008
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  2. TXINSURANCE
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    That is beyond a stretch at this point. Not Happening.

    Follow the money and find out why this changed. Who benefited from the change. There is your answer.
     
  3. SportsNut
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    I'm not sure why you think this is such a terrible or unusual event...?

    EIA are most commonly tied to the performance of the S&P 500... and index or compilation of the 500 stocks that comprise the SP500. In order to explain how the EIA works, once couldn't do it justice without explaining something about the SP500... or the appropriate equities that the underlying annuity are tied to...

    To allow an agent who is licensed only to sell fixed products, to sell and EIA is to allow... or sponsor and unregistered person to describe... and more or less sell their client on the performance of such investment vehicles. It is a recipe for disaster, to say the least.

    The minute that health insurance components become tied to equity performance, and the agent needs to explain such performance, then the SEC will begin controlling the sale of health insurance... not before.
     
  4. Crabcake Johnny
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    Crabcake Johnny Guru

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    Nah....you don't through all that when you're selling an EIA - just go by your training:

    "IT'S ALL UPSIDE AND NO DOWNSIDE....sign here"
     
  5. JMO Fan
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    Health insurance isn't sold as an investment. It's sold for protection. Not a security.
     
    JMO Fan, Jul 2, 2008
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  6. xrac
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    Power corrupts; absolute power corrupts absolutely

    I have no doubt that is is what the action by the SEC and FINRA is all about!
     
    xrac, Jul 4, 2008
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